From its first day of operations to December 31, 2014, Campbell Corporation provided for uncollectible accounts receivable under the allowance method: entries for bad debt expense were made monthly based on 2.5% of credit sales, bad debts that were written off were charged to the allowance account, recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments were made to the allowance account.
Campbell's usual credit terms were net 30 days, and remain unchanged.
The balance in Allowance for Doubtful Accounts was $ 184,000 at January 1, 2014. During 2014, credit sales totalled $9.4 million; interim entries for bad debt expense were based on 2.5% of credit sales, $95,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,000. Campbell upgraded its computer facility in November 2014, and an aging of accounts receivable was prepared for the first time as at December 31, 2014. A summary of the aging analysis follows:

Based on a review of how collectible the accounts really are in the "Before January 1, 2014" aging category, addition receivables totalling $69,000 were written off as at December 31, 2014. The 60% uncollectible estimate therefore only applies to the remaining $81,000 in the category. Finally, beginning with the year ended December 31, 2014, Campbell adopted a new accounting method for estimating the allowance for doubtful accounts: it now uses the amount indicated by the year-end aging analysis of accounts receivable.
Inst ructions
(a) Prepare a schedule that analyzes the changes in Allowance for Doubtful Accounts for the year ended December 31, 2014. Show supporting calculations in good form.
(b) Prepare the journal entry for the year-end adjustment to the Allowance for Doubtful Accounts balance as at December 31, 2014.

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Classification by Month of Sale November-December 2014 July-October 2014 January-June 2014 Before January 1, 2014 Balance in Each Category Estimated % Uncollectible $1,080,000 650,000 420,000 150,000 $2.300,000 8% 12.5% 20% 60%